Market MATH & Watchlist
11-July-2024: Market sideways
MATH: Momentum Anticipation and Trend by Homma:
MATH last week: Click the link
As technical traders, We
“Anticipate, but confirm. Wish, but only react.”
The market had a wide range + shakeout day yesterday.
A hanging man candle which has a bearish bias.
We had a sideways day today. We may call it the day 1 of consolidation.
The equation is quite simple. Bullish above the range, bearish below.
The breadth of the market during this sideways phase will provide hints as to which direction the market will break. The longer the consolidation, the higher the probability that the direction of breakout/breakdown.
In other words, if we break out or break down soon (within 1-2 days), the chances of that being a fakeout or shakeout would be higher.
Net 4% plot:
Net 4% plot prints a highly bullish number of 9.7% today. In this consolidation phase (that range), a positive value will add breadth confirmation and build a bullish bias. at the same time, a negative number will have a bearish bias.
Watchlists:
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